If you want to learn more about how to fix credit fast then you will want to read this article. Specifically, we will be discussing three easy strategies that you can implement to raise your credit score quickly. After reading this article, you should be ready to begin credit restoration on your own!
Pay Off Revolving Debt
Perhaps the fastest and easiest way to raise your credit score quickly is to pay off your revolving debt. One of the major factors that determines your credit score is your credit utilization. This is the relationship between what credit you have available to you and how much of it you are using at any given time. Ideally, you want to owe 25% or less than your total credit limit. Paying off installment accounts can raise your credit score slightly, but it will not have as much impact as paying off credit cards.
Make Sure Credit Limits Are Reporting Correctly
Because your credit utilization impacts your credit score so much, making sure that your credit limits are reporting correctly is another way to fix credit fast. Very often, companies will only report how much you currently owe as your credit limit. So, if you owe $1,200, they will report this as your credit limit even if your true limit is $5,000. This takes your credit utilization to 100% which is devastating to your credit score. Two companies that are guilty of this practice are Capital One and American Express. By disputing the credit limit that is being reported, you can raise your credit score by 20 points or more.
Have Parent or Spouse Add You as an Authorized User
Many people believe that under the new rules of FICO 08 that being added as an authorized user can no longer help your credit score. This is not true. The new rules simply restrict who can add you as an authorized user. If you have a parent or spouse with an older account that has a low balance and has been paid on time, this can be a great way to improve your credit score.